Treasury’s strategic role in driving growth
Exceptional treasury professionals are consistent, balanced, and continuously seek process improvements. They understand the mission-critical role their team plays in ensuring that funds are available to support strategic initiatives and sustain long-term growth.
But the most forward-thinking treasurers are going a step further. They’re transforming treasury from a control function into a strategic growth driver — by tightening the connection between treasury, accounts receivable (A/R), and payments. When these functions work in sync, companies unlock working capital, reduce FX exposure, and gain the real-time visibility needed to fuel smarter decisions and faster growth.
And they know that a finely tuned global A/R process is central to that mission. Without reliable A/R, none of the other finance functions can operate effectively — it’s like trying to play tennis without a ball. The infrastructure can be perfect, but without the most essential element, the game can’t begin.
So, why aren’t treasury and A/R functions more closely aligned? Treasury has a vested interest in strong invoice-to-cash processes, and a clearer understanding of their strategic connection can help treasury teams excel in their roles.
What is treasury management?
According to the Association of Finance Professionals (AFP), treasury management is “the process of overseeing a company’s financial resources (including cash, assets and liabilities) to achieve the company’s strategic objectives.”
At its core, treasury management focuses on optimizing cash use, managing daily liquidity and risk, and ensuring sufficient reserves to sustain operations and fuel strategic initiatives.
To put it simply, when someone asks, “What’s your financial situation?”, most of us think about how much cash we have now, how much we’ll have in a few months, our debts, and the risks to our future cash position. That’s the essence of treasury — ensuring the liquidity and financial resilience needed to support the organization’s strategic initiatives.
Where treasury and A/R often diverge
Within a corporate finance organization, the CFO’s office typically oversees several teams:
- Accounting/Controllership
- Financial Planning & Analysis (FP&A)
- Tax
- Treasury
In some companies, treasury functions are absorbed by Accounting or FP&A teams if a dedicated treasury department doesn’t exist.
Treasury operations are generally managed in two ways — through a Treasury Management System (TMS) or directly via the company’s bank. Each has complementary strengths:
A Treasury Management System (TMS) provides:
- Cash and liquidity management
- Bank connectivity
- Risk management (FX, interest rate, and credit)
- Payments
Bank-delivered Treasury Management typically offers:
- Bank-specific functionality
- Daily cash management, loans, and credit
- Sweep accounts
- Payments
- Risk management
While these models share commonalities, a significant gap often exists in A/R management and FX risk mitigation — both of which directly impact cash forecasting and liquidity accuracy. In practice, many corporates use both — leveraging the bank for day-to-day liquidity operations and a TMS for visibility, forecasting, and multi-bank connectivity.
Key gaps and their impact
Accounts Receivable (A/R)
A/R is the lifeblood of cash management and operational liquidity. Without full control over it, both short- and long-term forecasting accuracy suffer. Treasury teams may find it harder to make confident decisions about investments, intercompany transfers, or growth initiatives.
Foreign Exchange (FX) Risk
FX exposure introduces volatility to cash flows and balance sheets — particularly when borrowing in non-core currencies or managing intercompany payments. Forward contracts and options require constant oversight, and unpredictable rates can create real strain.
However, by leveraging an A/R platform that transfers FX risk to the payer, treasury and finance can mitigate exposure, reduce costs associated with maintaining multiple international accounts, and accelerate expansion into new markets.
Bridging the gap: What to look for in an A/R and payments partner
To optimize cross-border invoice-to-cash processes, it’s critical to choose a strategic partner that aligns with treasury priorities. Here are six key capabilities to look for:
1. Simplify domestic and cross-border payments
Your partner should make it easy for customers to pay — in any currency, anywhere. By enabling full, on-time payments and eliminating FX shortfalls, you can accelerate cash inflows. Features like automated payment reminders (“smart chasing”) can reduce DSO, especially for high-volume A/R teams that need to focus on strategy rather than manual follow-ups.
2. Automate what the TMS can’t
Most TMS platforms don’t natively handle cash application or invoice reconciliation — and when they do, it’s typically limited or dependent on ERP integrations. Look for partners that leverage AI and automation to streamline these processes and strengthen forecasting accuracy.
3. Reduce FX risk
According to PwC’s 2025 Global Treasury Survey, 83% of treasury professionals cited FX risk as their most critical economic exposure. Working with a payments provider that offers real-time FX rates and front-end conversion allows you to effectively eliminate FX exposure on receivables by transferring that risk to the payer. The result? Faster payments, happier customers, and no unexpected FX impacts.
4. Gain full visibility into working capital
When all domestic and international receivables are visible in one platform, treasury gains data consistency and operational control. Reducing DSO by even 14 days can have a transformative impact on cash availability, enabling faster strategic decision-making and opportunities for dynamic discounting or early-payment programs.
5. Access real-time, actionable reporting
Treasury thrives on data. Granular insight into payment timeliness, payer behavior, and regional trends helps drive better decisions — from liquidity planning to customer relationship management.
6. Prioritize customer experience
Never underestimate the power of making it easier for your customers to pay. A frictionless, transparent payments experience strengthens relationships, builds loyalty, and reflects positively on your brand.
The bottom line
Optimizing accounts receivable within the context of treasury management is essential for unlocking working capital, mitigating FX exposure, and driving sustainable growth.
That’s where Flywire’s invoice-to-cash solution comes in. By bringing together A/R management and cross-border payments in one intelligent platform, Flywire helps enterprises collect faster, reconcile automatically, and simplify global payment operations.
With real-time FX transparency, automated reconciliation, and a seamless payer experience, Flywire enables treasury and finance teams to improve visibility, reduce risk, and strengthen liquidity.
Discover how Flywire’s invoice-to-cash solution helps enterprises unlock more working capital and strengthen treasury operations.